Remittance inflows in Bangladesh remained above $3 billion for the sixth consecutive month, hitting $3.42 billion in May, as expatriates sent more money home to support family spending for Eid.

Bangladesh Bank data showed that inflows rose by 15.34 per cent in May compared with those of $2.96 billion in May 2025.

The figure was $3.12 billion in April, $3.75 billion in March, $3.02 billion in February, $3.11 billion in January and $3.22 billion in December

In the first 11 months of the 2025-26 financial year, remittance receipts increased by about 19 per cent to $32.75 billion, compared with those of $27.5 billion in the corresponding period of the previous fiscal year, reflecting sustained growth in inflows.

Bankers said that seasonal factors played a key role in the surge, as migrant workers typically send higher amounts to support family spending for Eid.

This year, Eid-ul-Azha, one of the biggest religious festivals of the Muslims, was observed on May 28.

They also pointed to the ongoing Middle East conflict as an additional factor.

Many expatriates reportedly sent larger sums or transferred savings back home due to concerns over potential disruptions in host countries and financial uncertainty linked to the war.

The interbank dollar rate rose to about Tk 122.75 in May from Tk 122.27 in late February, indicating growing pressure on the local currency.

Bangladesh recorded more than $30 billion in remittance inflows for the first time in the 2024-25 financial year, with total receipts reaching $30.32 billion, up from $23.91 billion a year earlier.

Monthly inflows have remained above $2 billion since August 2024.

Officials said that policy support had contributed to the steady rise.

Since January 2022, the government has provided a 2.5 per cent cash incentive on remittances sent through formal banking channels.

Improved exchange rates and stricter monitoring of cross-border transactions have also encouraged expatriates to avoid informal transfer systems.

Higher remittance earnings have helped ease pressure on the balance of payments and support foreign exchange reserves.

According to the Bangladesh Bank, reserves stood at $30.1 billion under IMF methodology on June 1, while gross reserves were around $34.76 billion.